Polygon (POL) is currently navigating through a crucial price level, with the $0.50 range standing out as a key area that could determine its next major price movement. Recent on-chain data suggests that a significant portion of POL tokens has been accumulated in the price range between $0.364 and $0.509. As of now, POL is trading around $0.330, and whether it can break through and hold the $0.50 level as support could set the stage for a potential price rally.
The accumulation of POL tokens in the $0.364 to $0.509 zone suggests that these price points have become important for the asset. In past market cycles, areas with significant accumulation have often served as key support or resistance zones. If POL can reclaim and sustain a price above $0.50, it would signal that there is strength behind the price action, possibly initiating a bullish trend. This could reassure investors, encouraging more buying activity and leading to upward momentum. A break above the $0.50 level could push POL closer to its previous peak, and some analysts expect it to climb toward higher levels.
However, a failure to establish $0.50 as a strong support level could have the opposite effect. Investors who bought POL at higher prices might begin to exit their positions in an attempt to minimize their losses. This would add downward pressure on the price, potentially leading to further sell-offs. A lack of stability above the $0.50 range could create a negative feedback loop where price declines lead to more selling, further distancing POL from the accumulation range and triggering a bearish sentiment.
Looking at the technical side, POL’s recent price movements reveal some key insights. After a surge in price and volume from a liquidity sweep, POL reached a high of $0.515 before experiencing a decline in late January 2025. Its current price stands just above the $0.32 support level, which has acted as a critical zone in the past. If POL can maintain its position above $0.32, there could be a chance for a rebound, as the support zone may attract buying interest.
On the other hand, the MACD (Moving Average Convergence Divergence) is currently in negative territory, reflecting ongoing bearish momentum. If the price fails to hold the $0.32 support level, POL could face further declines, with next key support levels identified at $0.30 and $0.28. This scenario could fuel additional selling, especially if investors lose confidence in the asset’s ability to recover.
The behavior of active addresses also plays a role in shaping POL’s price outlook. As of early 2025, the number of active POL addresses has been on a slight decline from its peak in 2021. At present, there are about 591.9k active addresses, down from a 30-day high of 595.2k. A decline in active addresses could signal waning investor participation, which could weigh on the price. Conversely, if the number of active addresses begins to increase, it would suggest renewed interest and potentially a boost to the price.
In conclusion, Polygon’s price action in the $0.50 range is pivotal for determining its next move. A successful retest of this level could provide the foundation for a bullish recovery, while failure to break through this resistance could lead to more selling pressure. Investors should closely monitor the price behavior around this critical level and watch for shifts in trading volume and address activity, as these factors could provide important clues regarding the future direction of POL.
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